7 Types Of Insurance Coverage Demolition Companies Need

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Demolition companies play an important role in the construction industry. They are entrusted with the tasks of dismantling buildings or demolishing outdated bridges. These companies ensure structures are safely taken down without harming individuals or property. In this article, we will discuss some of the vital insurance coverage a demolition company needs:

1. Plant And Machinery Insurance

Plant and machinery insurance is a form of property coverage designed to safeguard the equipment owned by business owners. As the owner of a demolition company, it becomes critical to have protection against disasters that could potentially harm or render your tools and machinery useless.

As a leading plant and equipment insurance provider, Insure Group offers insurance coverage that can provide you with a shield against risks, including damages caused by fire or explosions, theft or burglary (including attempted theft), as well as accidental damages resulting from the work of employees or contractors collaborating with your equipment, on-site.

2. General Liability Insurance

General Liability Insurance is a form of insurance that offers protection in case you unintentionally cause harm or damage to others. This coverage applies to accidents on your premises and off-site if the accident can be linked back to your company in some way.

With General Liability Insurance, your business is safeguarded against lawsuits filed by individuals who have suffered injuries or damages due to your actions. Additionally, you can obtain coverage for injury and property damage caused by your employees or subcontractors while working for you on job sites (excluding off-site incidents).

As long as there is a connection between the incident and any issues at the location where demolition work was performed, it should typically fall under General Liability Insurance. Therefore, it’s essential to be covered under this type of policy.

3. Environmental Liability Insurance

Environmental liability insurance is crucial for demolition companies as it safeguards them against lawsuits filed by parties who may be impacted by the demolition process, including nearby residents and businesses. This coverage protects against property damage and bodily injury arising from releases.

Perth’s leading demolition company, Statewide Demolition, strongly suggests that before purchasing a policy, one should consult with your insurance agent to determine the amount of coverage based on factors such as the size of your company, its location, and industry type.

Environmental liability insurance would come into play in scenarios like an oil tank leaking during demolition or a worker encountering an accident while removing walls and falling through the floor.

4. Worker’s Compensation Insurance

Worker’s compensation insurance is typically required in the majority of states. It is also advisable to have it in place even if your state does not mandate it. Workers compensation provides coverage for any injuries that employees may sustain while on the job. If you do not possess workers’ compensation insurance, you could potentially face a lawsuit for negligence if your employees are injured while working on your demolition project.

5. Commercial Auto Insurance

Commercial auto insurance is important as it protects your company when an employee’s car is involved in an accident. This insurance coverage encompasses not only the damage caused to the vehicle but also covers expenses for anyone injured during the incident.

The cost of auto insurance varies based on factors such as the nature of your business (for example, a restaurant may entail more driving compared to a construction company), the annual mileage (a delivery service would naturally accumulate more miles than someone who merely drives for lunch outings) and whether or not you have employees using their personal vehicles for work-related purposes.

6. Contractor’s Equipment Insurance

It is crucial to ensure that your equipment is adequately insured. If any mishaps occur, you could be left in a situation. Without coverage, you may have to spend an amount of money exceeding thousands of dollars.

Contractors Equipment Insurance protects the contractor’s machinery and tools/equipment used throughout business operations. This coverage also extends to vehicles subcontractors, and employees use while working on-site.

7. Professional Liability Insurance (Errors and Omissions)

Professional liability insurance, also known as errors and omissions insurance, is a type of business coverage that safeguards you against claims related to your services. In the event of a lawsuit, this insurance will assist in covering defense costs, settlements, and judgments brought against you.

The specific types of claims that professional liability insurance covers may vary based on the policy. However, they generally include:

1. Negligence: This coverage protects against actions or omissions by a party that results in injury or property damage to others. For instance, if a carpenter accidentally cuts off someone’s finger with their blade while working on their house, it would be considered negligence under policy definitions.

2. Breach of contract: This occurs when one party fails to fulfill its obligations as stated in an agreement. For instance, if an architect promises to deliver plans within two weeks but fails to complete the project, that may be considered a breach of contract. Similarly, suppose a contractor does not provide agreed-upon goods or services within the specified timeframe (in cases where there was no written contract beforehand). In that case, technically, a breach may not apply since no predefined terms were set.